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Budgeting and Money Management

Budgeting and Money Management. Purdue Employees Federal Credit Union. Topics of Discussion. What is a budget? How budgeting plays a role in a financial plan Creating a budget Tracking your expenses Where to go for help? Holiday Spending Tips. What is a Budget?.

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Budgeting and Money Management

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  1. Budgeting and MoneyManagement Purdue Employees Federal Credit Union

  2. Topics of Discussion • What is a budget? • How budgeting plays a role in a financial plan • Creating a budget • Tracking your expenses • Where to go for help? • Holiday Spending Tips

  3. What is a Budget? • A short term financial forecast. • A tool used to monitor, control expenditures and purchases. • A comparison of actual spending to planned spending and actual income to estimated income.

  4. How Budgeting Plays a Role in a Financial Plan • What is a financial plan? • A financial plan consists of a number of financial goals. Short term, intermediate, and long term. • A proper budget will help to meet the desired financial goals if followed.

  5. Create a Budget • First start with all your sources of income • The next step is to walk through all your monthly expenses including: • Utility bills • Insurance premiums • Gas money • Childcare • Recreational expenses • Food and laundry costs • Make a list of all your loans and credit cards with outstanding balances and the monthly payments

  6. Budget Analysis • The Results • A Surplus: Are you seeing the surplus in your account at the end of the month? • A Deficit: We need to evaluate ways to cut costs.

  7. Budget Analysis • Evaluate your expenses • What are your necessary expenses? Which items are frivolous expenses? • Re-evaluate your goals. Are they realistic and obtainable?

  8. Tracking Expenses • Take a month and document every purchase. (Candy bars, soda’s, daily paper from the gas station) • Save all receipts and carry a notepad with you to jot down purchases. • Set up a spreadsheet and update daily. • Break expenses into categories.

  9. Where to go for help? • PEFCU • We have a full time Credit Counselor available to help. Joe Redmon (765) 497-8822 • PEFCU also has Members Financial Services to help with investments and financial planning. (765) 497-8846

  10. Where to go for help? • Community Help • Family Services • Lafayette Neighborhood Housing • Area IV Agency

  11. Holiday Spending Tips • Shop with a plan • Shop early • Set your limits • Categorize spending • Gifts • Food • Gift wrap/accessories • Travel

  12. Holiday Spending Tips • Separate shopping from buying • First trip should be to research • Last trips should be to purchase • Shop prices NOT sales • Beware of sales pitches • Be an educated consumer • Not all “sales” are good deals

  13. Holiday Spending Tips • Cash vs. Credit • According to research: shoppers spend an average of $100 to $500 more than planned when using credit cards • Online shopping • Avoid in store temptations • Reduce time • Be smart and safe!!

  14. Holiday Spending Tips • Start your own tradition • Buy gift certificates • Make your own gifts • Draw names or do a grab bag

  15. Questions?

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